Teva surpasses expectations in Q4 but sets cautious outlook for 2025
Teva surpasses expectations in Q4 but sets cautious outlook for 2025
Despite a strong finish to the year, Teva forecasts lower-than-expected earnings and revenue growth for 2025.
Teva ended the final quarter of 2024 with results that exceeded market expectations but provided a disappointing outlook for 2025. The company expects adjusted earnings of $2.35–2.65 per share for the year, while analysts had anticipated a significantly higher figure of $2.78 per share.
Teva's annual revenue forecast is in the range of $16.8–17.4 billion, compared to the market expectation of $17.09 billion. The company projects operating profit between $4.1 billion and $4.6 billion.
Austedo is expected to remain Teva’s primary growth engine this year, with projected revenue of $1.9–2.0 billion. Meanwhile, expectations for Ajovy, a migraine treatment, are more modest, with forecasted revenue of $600 million, up from $507 million in 2024. Teva’s new long-acting schizophrenia treatment, Uzedy, is expected to generate $160 million in revenue in 2025, after contributing $117 million in 2024.
Teva ended the fourth quarter with revenue of $4.2 billion and adjusted earnings of 71 cents per share—both surpassing analysts' expectations of $4.12 billion in revenue and 70 cents per share in earnings.
For the full year 2024, Teva reported revenue of $16.5 billion and adjusted earnings per share of $2.49, both exceeding market expectations, which had projected $16.42 billion in revenue and earnings of $2.47 per share.
These results follow a strong year for Teva’s stock after years of declines and stagnation. The company is currently valued at approximately NIS 90 billion (prior to today's trading) after an 80% surge over the past year.
Richard Francis, Teva's CEO, said: "2024 was a turning point for Teva, marking our second consecutive year of growth, driven by our core generics and innovative products. We continued to achieve key milestones across the company's four pillars. Among other things, we recorded higher-than-expected results for our core innovative products, growth in our generics business across all segments, and acceleration in our early innovation pipeline. In 2025, we expect further progress in our core innovative growth drivers, as well as in our complex generics and biosimilars businesses, supported by new product launches."
